Accounting

Top 7 Tips to Get Clients to Pay on Time & some Bonuses

Posted on 08/07/2019

You’ve delivered your services or product(s) right on time, and your client was exhilarated with it, but there’s a twist. The invoice you’ve sent are several days late, and this isn’t the first time that this has happened. Your might not have considered using Outsourced Accounting Bookkeeping Services to get your clients to pay on time.

Irrespective of the business you are in, you will experience late-paying clients. As a matter of fact, almost 80% of businesses receive their payments well past the due dates. Approximately 75% of businesses have had clients who have not paid their invoices for at least 40 days.

Looking at the circumstances, customers get the benefit of the doubt. Most clients are amicable and are looking on paying you eventually. Their late payments hurt your income and ruffle-up your budgets. That’s not good for your business’ financial health. It’s wise to nip the problem in the bud and take action to preclude new clients to become late payers.

Where should you start? To help remind your customers to pay on time, we suggest using one of the following tactics:

1. Maintain Superb Client Relationships

Your client will want to pay you on time when you make them feel special and not a revenue machine. Always maintain a friendly relationship with your customers and let them know they’re special. There are many things to make them feel they’re not only a client, but a valued member of your team. Help solve a personal problem, feature them in your blogs, or provide a one-time service bonus.

People always want to feel special, and our brains fire up when we’re mentioned by our names. Clients are more than willing to go out of their way if you do the same for them first, and you’ve just learnt the Principle of Reciprocity.

As a business, you need to always remember that the clients may have hundreds or even thousands of employees. Make a list of key contacts and send them a personalized gift or a thank you note. A simple hand-written or printed note telling them they’re important will go a long way when the time arrives for them to pay your invoices.

2. Having Precise Payment Terms

Sometimes, clients assume wrong about your payment terms. They assume you function on a “Net 21,” “Net 30,” or even on a “Net 21” basis or on specific days, like the 1st and 15th of a month. All your terms and conditions should be worded-out clearly. There should not be any gray area.

Add relevant sections in your contracts that explain the due dates, payment modes, and other required terms in detail. While working on this, check if your customers require specifically formatted invoices or how you should submit your invoices to be in compliance with their system.

Learn how having Outsourced Accounting Bookkeeping Services helps you reduce time on submitting your invoices and doing follow-up with your clients.

3. Automating Your Invoicing Process

There are times when you are busy in your project and you simply forget to send the invoices to your clients. Sending invoices through mail takes long, risks getting lost, and adds to billing expenses. Automating the process using invoicing software and accounting software gives the clients the invoice quickly. It also saves on mail expenses, paper, and keeps your invoice at the top of client’s mind.

You should schedule email reminders for payments so you are not chasing late-paying clients. Outsourced Accounting Bookkeeping Services is an invaluable option for staying on top of your Accounts Payables and Accounts Receivables. Automated solutions have payment reminders and can be linked to online payment clearance providers. It is advisable to invest in a system that automatically sends the invoices once you complete your projects.

4. Implement a Recurring Payment System

If you are working long-term with your clients, you should seriously consider a Recurring Payment System. This allows you and the client to focus more on the project and not be bothered by billing schedules and invoice due dates. It’s easy to get this up and going when you provide the same services every month.

With varying payment dues and dates, you are more likely to run into difficulties. Your client shouldn’t mind payments going out automatically for expenses without reviewing them. If they want to know, sit down and set a basic amount for all recurring invoices. If you have additional costs, show it to the clients before you bill them.

Making sure your automated invoicing solution sends invoices and receives money from clients is always a plus. You should make sure that this automated solution allows for recurring payments, allowing you and your client to focus on work. You will save time in preparing and sending invoices and your client will save time paying them.

5. Client Rewards and Recognition

How many times have you sent a “Thank You” note or a gift to your client; not to pay invoices, but to let them know that they are appreciated? A few times over the years, never? Doing this is not bribing them to pay early; you are just making them feel appreciated. Writing a handwritten “Thank You,” “Thank You for your business,” or even a “You’re a great client,” will go a long way other than clearing your pending invoices or them being paid quickly

You are giving your clients a cause to pay attention and provide a discount for prompt or early payments. This small incentive encourages your clients to clear your dues, but penalizing them for late payments is also warranted. You have to put a percentage rate for missing deadlines, but you must put the emphasis on prompt payments. You can offer a discount of 2% or even 5% for early payments.

6. Direct Invoice Payment Links

Clients might be willing to pay you immediately, but they have to open another program, log-in, and then pay you. They might be called away from their system and the session would time out before they got back. The clients don’t like repeating these steps again and again. They’ll leave it for later and eventually forget or it will be delayed.

Investing in an invoicing system supporting integrated payments like payment processor buttons reduced the time for payment processing. Your customers are a click away from paying you for your job. This reduces any distractions that might stop them from the payment task in front of them. The easier the payment process, the quicker you get paid.

In an ideal world, invoices are paid as soon as they are presented. In the real world, you need a helping hand for keeping your cash flow flowing. Using Outsourced Accounting Bookkeeping Services helps you process invoices, present it to clients, follow-up, and receive payments will reduce your financial stress.

7. Ask for An Upfront Payment and then Smaller Payments

An excellent way for lowering risk and making clients pay on time is by splitting the payments into smaller portions. You should do this will all clients. If you have clients who are already paying you, then implement this from their next project. It should be your golden standard for invoicing. You should split payments in parts like 30/30/20/20, 25/25/25/25, 20/20/30/30, 35/25/20/20 or any combination that you are comfortable with.

An agreed upon pre-payment amount before starting work on the project, the next amount after finishing the first draft. This ensures that you have received an amount before you reach feedbacks and changes to the project, or the half-way point. Now, after you have successfully implemented all the feedback, changes, critiques and the client is satisfied, ask for the pending amount.

It is better to ask for an upfront deposit when working on large projects or huge orders from the client. You should offer moderate payment options instead of one big lump sum. This ensures that you have cash flowing till the completion of the project and clients would easily be able to make those payments.

Nevertheless, when working on large projects, it is best to ask for a deposit to cover expenses.

 

BONUS TIPS to get paid quickly

8. Delivering Services on Time

It is not enough to look to your customer for late payments when you have not delivered your services on time. You should introspect and see if you fulfilled your customers order on time. If you’re a business and you complete the project late you can’t send then invoice. You have to account for that when you prepare your invoice.

Make sure you have enough manpower to be able to complete the project on time. Your customers will be happy and pay you quicker when you send your invoices to them for clearing. The quicker you complete your projects the quicker you get paid. There is no point in being frustrated when you deliver late on your projects, but expect the client to pay your invoices on time.

9. Quick Invoicing

Send the invoice to your customer as soon as the work has been completed. This results in the work and payment being linked together. You will find that by linking these two together, you will receive your payments quicker.

When your project work has been completed, there is no reason to delay the invoicing part. Using Outsourced Accounting Bookkeeping Services help you to reduce the delay in billing your client and providing them with invoices at the earliest.

10. Use Outsourced Accounting Bookkeeping Services

There is no denying the fact that there is always the need for outsourcing services in every field. With a dedicated Outsourced Accounting Bookkeeping Services team you can concentrate on providing your client with the best service possible. The team would be an extension of your business and would ensure prompt billing and follow-up to clear pending dues and payments.

Relying on the outsourced team also ensures that you are not wavering from your task at hand and are fully immersed in the project. All billing and invoicing-related tasks would be handled by the outsourced team and you receive payments on time. You have to update the team of the client contracts, billing schedules, reminders to be set, and follow-up criteria’s once and it would be done as a routine job.

It would be wise to invest in an outsourced team to reduce costs on mailing, printing, paper, and manpower-hours invested to bill and invoice the client. All processes relative to financial services would be handled in the backdrop without you being worried about the cash flow.

11. Ensure you have a Collection Policy

In most cases you get paid either on time or late. There are cases when you would be paid very late, but are paid nonetheless. There are situations where even after frequent late fees and reminders your clients don’t honor their invoices.

In these types of cases, you can ask your attorney to send a letter or make use of debt collections agencies. Be careful though, you are not trying to damage your relationship with the client. It may be that the client just forgot or the intern/secretary was inattentive in process your invoice.

Conclusion

For these tips to work there needs to be open communication between you and your client. While you can’t guarantee that these will work, you should prevent late payments. These tips will work with most clients and give you peace of mind.

Irrespective of how you minimize the problem, you should make sure your clients know your terms and conditions, billing and invoicing details, and other agreements. Conveying clearly with no misinterpretations gives you the advantage when you follow-up with clients for late payments and late fees.

Whatever steps you take, always have a clear-cut collections policy. This helps you to resolve unfavorable situations if they occur at all. Many customers are cooperative and pay their bills on time or late.

Never, ever undervalue the ability of preserving a harmonious and professional relation with your customers. Regardless of the frustration, always keep your cool, and be respectful when reviewing and reminding about invoices that have been pending for long.

Topics: Accounting , Bookkeeping Services


Top 5 Essential Account Payable Trends to Focus on in 2019

Posted on 29/05/2019

It is rather an accepted norm to view Accounts Payable as a traditional mandate. However, each passing year we witness fleeting trends that influence and impact the outcomes of Accounts Payable. As we stand midway across 2019, now is as good a time as any to assess and analyse the strategies and trends that have made a difference this year. With trends and tactics evolving every day, it is highly critical to stay abreast and lead from the front to make a difference.

The forecast of 2019 looks very promising with the substantial impetus provided by today’s technology. However, leveraging these offerings and transforming them into tangible results is what would make all the difference at the end of the day.

Here are the top 5 essential  Account Payable trends to look out for in 2019:

1.Accounts Payable Automation

The crux of the efficiency of Accounts Payable stems from the competence of the invoice routing and data entry. A lot depends on the precision with which these tasks are undertaken. It has also been discovered, in a recent study that the two biggest challenges within Accounts Payable were the manual data entry and the manual dependencies of invoice approval.

In an attempt to increase efficiency, organizations are now transitioning towards automation. Automation would simplify the entire process and eliminate any room for human errors. Automation takes the top spot in terms of the Accounts Payable trends to watch out for in 2019.

Some of the outcomes of automation that can positively impact the business are:

  • Swifter invoice approval rates
  • Reduced processing costs
  • Heightened visibility across the entire AP process
  • Enhanced productivity

2.Using Big Data as Spearhead

How much data does your organization have lying around without being tapped into? It is highly probable that you have enormous amounts of data that you barely feel the need for. The data if appropriately used by the Account Payable teams could be a total game changer. The data can be leveraged to completely transform the process of Accounts Payable in your organization. Big Data is no longer just a buzzword. To stay on top and keep up with evolving trends, it would be quintessential to make good use of the data that you have at your disposal.

An analytical study into the dynamics of the approval of an invoice along with the time taken can help shed greater insights into the overall process. Spend analysis reports can help assess the financial well-being of the organization. This in turn can instate transparency and help improve the cash management.

3.The all-silver Cloud

Every dark cloud has a silver lining, doesn’t it? Now imagine an all silvery cloud… Looking good eh?

Well, studies show that over 58% of large companies use cloud computing. Generally, when a new technology debuts, it brings along varying degrees of cynicism and apprehension. But today, cloud has become the norm. Operating on a subscription-based service model, cloud is also highly cost effective. Records also show that companies that migrated to cloud have shown a growth in revenue by 15%.

The accessibility that comes with cloud can be a real key differentiator. Managers being able to remotely access, review and approve invoices can drastically bring down that time involved. Also, unlike AP software that may periodically require updates, at times even leaving the software temporarily obsolete. Cloud computing also ensures high level of data security.

4.Fraud Prevention

A report tells that about 86% of organizations have had at least one incident of fraud in the past two years. The report also goes on to state that, all the companies, regardless of the incidents hold fort and strengthen their security features consistently. Organizations don’t generally roll back to an older state threatened by these attacks.

The rise of modern computing technologies has almost always been parallelly accompanied by growing threats and vulnerabilities. As 2019 promises to be a big year for Accounts Payable, it is also going to be clouded with the evolving security challenges. These threats, when circumvented can pave way to swifter and more reliable monetizing avenues.

One of the easiest ways to reduce fraud is migrating completely to digital transactions and getting rid of paper checks. It has also been studied that digital transactions are capable of reducing fraud by at least 10 times as opposed to conventional methods. Investing in a fully automated procure-to-pay solution should help voraciously combat fraud.

This could be the year that Accounts Payable finally sheds its cost centric stature to unveil a more profit centric stature.

5.Evolving Skill set in Accounts Payable

The transition from a technology to another is not as straightforward as it sounds. It doesn’t just take effect after installation of the requisite hardware and software. It involves a lot more than just setting up the system. The demand for new skill sets will necessitate employee training and skill upscaling. From a more manual skill set of data entry the demand would shift over to more cerebral skillsets like data interpretation and business analysis.

It is also likely that skills like change management, software administration, performance analytics would be prerequisite on the resume’ of an accounts payable manager.

 

Why Velan?

With a legacy of proven proficiency spanning across a decade, Velan is equipped with a veritable pool of talents and skill sets that cater to the evolving needs of today’s technology driven world.

Talk to our Experts today [CTA] and give your business the smooth sailing it deserves!!!

 

Citation 1 :  Accounts Payable : https://www.levvel.io/resources/report/pitching-roi-for-accounts-payable-automation

Citation 2: Cloud : https://www.mediusflow.com/en/untapped/articles/innovation/ap-solutions-in-cloud-vs-on-premise

Citation 3: Fraud Prevention : https://strategictreasurer.com/2017-treasury-fraud-controls

Topics: Accounting , Accounts Payables


Are you having trouble pricing your bookkeeping services?

Posted on 06/03/2019

Have you ever wondered if you’re getting the most out of your bookkeeping service provider? With the hourly rates almost becoming the convention of pricing, have you ever considered that much of this would be at the mercy of the bookkeeper’s skill set and tactfulness. There’s no real pricing panacea when it comes to bookkeeping services. The hourly pricing mechanism may make sense in the case of certain larger firms with enough man power to tussle through the stages after the bookkeeper clocks out. However, if you are just starting up or own a small business, it would rather be sensible to have someone work beyond the hourly confines.

Bookkeeping services

Now that you’ve set up your business and have everything rolling except your books. It would be tempting to try saving a few dollars by swinging your axe at keeping the books relevant. As adventurous as it may sound, it requires a prescribed set of skills. Also, if things go awry, you may end up spending more than what you would have on a bookkeeper.

So how do you tailor the bookkeeping services to your requirements with optimal pricing? There are a multitude of variables that need to be accounted for before deciding upon the type of bookkeeping service you may require. Variables like company size and lifecycle, number of monthly transactions, number of employees and how payroll is processed, number of expense accounts, credit cards, invoices to send out, bills to pay, number of balances sheets to reconcile will help you understand if you require a full-time bookkeeper or if a part-time gig would suffice.

In the early stages, most small businesses are chiefly concerned with compliance – paying bills, getting paid, recording transactions, ensuring payroll accuracy and following state and federal regulations. However, over time they start putting more emphasis on the need for timely, accurate financial reports and intelligence. At this juncture the business will demand more advanced bookkeeping services as the need to make more data-driven decisions will increase.

So, the first question you need to ask yourself is whether you just need compliance – basic bookkeeping – or if you’re ready to upgrade to advanced bookkeeping that will help you drive increased profits improved cash flow and growth. Since both require very different levels of effort and skillset as you can imagine, the cost for advanced bookkeeping services is much higher.

Role of a Bookkeeper in a small Business:

The pivotal role of bookkeepers is maintaining your books closely every day. They generally do all data entry into accounting ledgers or software.

Bookkeepers focus on recording financial transactions of a business through maintaining records, tracking transactions, and creating financial reports. Also, if need be, they also take part in other activities such as

• Entering, Coding and Paying Bills
• Creating and Sending Customer Invoices
• Collecting Past Due Accounts Receivable
• Reconciling Bank and Credit Card Accounts
• Maintaining Vendors for Accounts Payable and Clients for Accounts Receivable

Primarily, there are three choices at your disposal. And knowing how they cater to the various needs of a business will help you cut your coat according to the cloth.

1. Full time bookkeeping services:

According to Glassdoor, listings in cities with high cost of living show that full time bookkeepers charge as much as $70,000, excluding the perks, health insurance, paid vacations and overhead involved. A full-time bookkeeper will handle the day to day accounting functions for your office. Although, keeping your books in order and up-to-date is the foundation of the financial strength of any business, for a small or medium business spending $70K on bookkeeping would be practically pointless.

2. Part-time bookkeeping services:

The rates of part-time bookkeeper vary widely. A rough estimate for internal part-time bookkeeper’s average at around $20/hour largely based around the job description and location. Part-time bookkeepers usually perform basic bookkeeping duties that would require supervision. If you’re one who can manage your job and do some accounting each month but need an extra hand, a part-time bookkeeper would be ideal. They can undertake tasks like inputting receipts and tracking employee time sheets, accounts receivable and accounts payable.

3. Outsourced bookkeeping services:

Outsourcing bookkeeping services is one of the most popular options for small and medium businesses these days. Just as in the case of hiring an internal bookkeeper, defining their roles and functions in a granular way will be key. You’ll have to decide upon the functions you would like to outsource and the functions you’d like to retain. The average price of outsourcing your bookkeeping vary between $500 to $2,500 a month depending on the number of transactions and complexity of services required. A key benefit of Outsourcing is it gives you the ability to customize the services you receive to your bookkeeping needs.

With the unfair degree of scepticism associated with bookkeeping, many businesses are concerned about switching over to outsourcing, not understanding how the pieces stitch together. But with today’s advancements in technology, outsourcing has never been easier and safer. Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper.
Outsourcing comes with another added advantage. Besides effective cost cutting, it also enables freeing up resources to take care of other operational roles. Outsource and free up your good employees to help focus on growth!

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:
a. Bank Reconciliation
b. Statement of Assets and Liabilities
c. Accounts Receivable and Payable
d. P & L Statements
e. Payroll Services
f. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services


Outsourced Bookkeeping Services Basics for Small Businesses

Posted on 09/01/2019

When it comes to running a business, a clear and detailed record of the history of transactions involved would be vital to the seamless and efficient functioning of the overall enterprise. It wouldn’t be an exaggeration to say that the survival of most businesses rely heavily on how these transactions are recorded and managed. Organizing these records can be done on paper, with the help of software or by employing of a hired hand. Without a proper bookkeeping system, a business can become vulnerable are susceptible to legal problems and cash flow issues.

Outsourced Bookkeeping Services Basics for Small Businesses

A smooth tax filing can only be asserted by a proper bookkeeping process. Business records are key ingredients without which sorting through the numbers would become messy and complex. Hence as an exercise of caution, it is important to keep the following information in the books:

Revenues and Expenses

Revenues, in general, refer to the money that the business receives from customers. This makes up the accounts receivables column in the book. Staying on top of the book would imply keeping it up to date and promptly sending out bills and invoices.

Keeping track of expenses is just as critical as keeping track of revenue.

In general, revenue and expenses constitute the most basic information in the book. Keeping a close check on them would prove to be highly critical.

Inventory

Inventories are prone to merchandise misplacement, theft, and other mishaps. It is highly critical for businesses to maintain a clean and clear record of inventories to prevent the occurrence of such events. Keeping inventory holdings to a minimum would help in better tracking of sales and trends. The numbers in the inventory should be periodically tested by physically counting the products.

Accounts Payable

The money that needs to go out to suppliers and the money that is due from customers come under the accounts payable column. Data that includes invoice dates, numbers, amounts, terms, dates and amount paid and/or due, client information and balances needed to be organized and managed properly. A good bookkeeping practice, particularly Accounts Payable, can make payments easier.

Payroll Expenses

If there is one part of the book that needs to be up to date at any given time, this will be it. Besides being up to date, accuracy and precision is also highly critical. All this will come in handy during the tax filing season. Procrastination and sidelining of these activities can result in severe negative repercussions.

Purchases

Purchases are used to track materials of all sorts and kinds that are purchased for the business. It is an essential variable when it comes to calculating the profit of the company.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services


What Are Bookkeeping Services, Exactly?

Posted on 17/12/2018

Businesses, regardless of size will at some point require bookkeeping services. All business owners would have come across the term “bookkeeping” number of times. From the very first instance, a business opens its doors and collects its very first dollar, the role of a bookkeeper would generally commence. Advisors, partners, and other well-meaning associates would have undoubtedly recommended and suggested bookkeeping services to help keep a company’s books and finances on track. Bookkeepers help produce financial records that give business accurate information about its financial activities. These records are critical to the future success of any business.

What Are Bookkeeping Services, Exactly

Bookkeeping Services and what they do:

Generally, bookkeeping service proposes a three-tiered approach to developing and maintaining the overall financial processes and management. The first tier is made up of the accounting software specialist, who tailors data to the specific needs pertaining to the business. Access to the software and reports will be accordingly provided.

The next tier is the full-charge bookkeeper. The basic roles and responsibilities of a bookkeeper are pretty straightforward: to track payables and receivables and help keep the business’s financial transactions documented. A full-charge bookkeeper can also manage payroll, handle deposits, create and maintain monthly financial reports, manage the ever-changing world of sales taxes as well as quarterly taxes and withholding.

Bookkeepers also reconcile bank statements to internal accounts and come in very handy during an internal or IRS audit. Between the accounting specialist and the full charge bookkeeper, there will be the need to create a set of checks and balances for the business.

Scrutiny and analysis of individual department spending will be carried out by the bookkeeper. This is where the third tier of bookkeeping comes in to play– the controller. The controller increases the company’s overall financial accountability and checks and balances. A controller reviews the bookkeeper’s ledger for accuracy while also maintaining the integrity of the accounting data file in the future so that adjustments can’t be made without approval.

Benefits of Bookkeeping Services:

The underlying structure bookkeeping services apply is what really makes will eventually make a difference in the end, regardless of their primary objective of ensuring the financial health of a business. Bookkeeping services implement—and sustain—an unswerving financial process that strengthens the health of a business and facilitates creating and encouraging uniformity in tracking, paying and reporting. The significance of this is immeasurable as it insulates a business from many costly and dangerous risks.

Another major the benefit of the bookkeeping process comes into play when the bookkeeper coordinates with the management of the business in order to sanction purchases and gather expense reports. This activity requires extreme organizational, management and math and interpersonal skills.

Bookkeepers also reduce the overall expenses of a business. Besides ensuring that the books are maintained properly they also help keep a close eye on waste and mismanagement of supplies and inventory. All these benefits come along with the extra time the business can save since internal resources will no longer need to try and perform these tasks.

Though there’s no doubt that a bookkeeping service can save a business both time and money, it must also be noted that the processes and consistency introduced by the service offered can increase the longevity and efficiency of a given business, rendering the organization profitable for decades to come.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services